Slide 1: Wingstop Investor Presentation
WINGSTOP INVESTOR PRESENTATION WINGSTOP INVESTOR OVERVIEW
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
FORWARD -LOOKING STATEMENTS This presentation contains forward -looking statements that are subject to risks and uncertainties. All statementstementsother than of historical sta fact or relating to present facts or current conditions included in this presentation are -looking forward statements. For
Slide 3: Wingstop Operates in a Category of One
WINGSTOP OPERATES IN A CATEGORY OF ONE WINGSTOP INVESTOR OVERVIEW
Slide 4: Flavor: Our Mission to Serve the World
At Wingstop our mission is to Serve the World FLAVOR It’s flavor that defines us and has made Wingstop one of the fastest growing brands in the restaurant industry—because we’re not just serving wings, we’re elevating life through flavor. 3 WINGSTOP INVESTOR OVERVIEW
Slide 5: Our Mission and Vision
OURMISSION OURVISION TO SERVE THE WORLD TOBECOMEA TOP10 FLAVOR GLOBAL RESTAURANTBRAND WINGSTOP INVESTOR OVERVIEW 4
Slide 6: We Are Just Getting Started at Wingstop
WE ARE JUST GETTING STARTED AT WINGSTOP $3M 10,000+ AVERAGE UNIT VOLUME (AUV) TARGETGLOBAL RESTAURANT POTENTIAL 5 WINGSTOP INVESTOR OVERVIEW
Slide 7: And We Have a Proven Track Record
AND WE HAVE A PROVEN TRACK RECORD DRIVENBYA GLOBAL MARKET PRESENCE… AND A PROVEN GROWTH ALGORITHM $4.8B System-widesales1 $2.1MAUV2 25.8% System-widesales 71.0% Stackeddomestic 5-yr CAGR3 same-storesalesgrowth4 50M+ 2 Uniquedigital guests 70% Digitalsalesmix2 13.1% Restaurantdevelopment 1,178 3 Netn
Slide 8: With Industry-Leading Same-Store Sales Growth
WITH INDUSTRY -LEADING SAME -STORE SALES GROWTH 71.0% 2024 44.4% 2023 2022 29.0% 29.0% 27.0% 2021 24.4% 20.2% 19.5% 19.0% 2020 11.0% (1.0%) (1) (1) (2) (2) (2) (2) (1) (1) (2) (1) (1) Same-store sales growth domestic FY 2024 1. Reflects global system -wide 7 WINGSTOP INVESTOR OVERVIEW 2. Reflects do
Slide 9: Wingstop Has Broad Consumer Appeal
WINGSTOP HAS BROAD CONSUMER APPEAL ACROSS TH YOUNGER CONSUMERS CRAVEABLE FOOD GLOBAL RELEVANCE • High level of customization to cater to • Broad, loyal and diverse guest base • Core age demographic –35is 18years old multiple flavor profiles, enabled by - best attracted by unique flavor experience, •
Slide 10: We Haven't Found a Point of Maturation
WE HAVEN’T FOUND A POINT OF MATURATION AVERAGE UNIT VOLUMES (AUVS) BY VINTAGE AUVS BY VINTAGE $0.7M YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: Averageunit volumes shown for each -week 52 period since restaurant opening for their re
Slide 11: Best-in-Class Unit Level Economics and Returns Continue to Strengthen
BEST-IN-CLASS UNIT LEVEL ECONOMICS AND RETURNS CONTINU STRENGTHEN AS RESULT AUVOFGROWTH CASH-ON-CASH RETURNS REMAIN STRONG 2015 2019 TODAY DomesticSystemAUV(1) $1.1M $1.2M $2.1M (2) Investment Cost ~$370k ~$400K ~$500K (3) Unlevered COC Return 50% 50% 70%+ Note: 1. AUV based on Domestic System avera
Slide 12: Our Unit Economics Drive Significant Demand for Development
OUR UNIT ECONOMICS DRIVE SIGNIFICANT DEMAND FO GLOBAL UNIT COUNTS GLOBAL DEVELOPMENT PIPELINE 2,563 1,955 2,214 1,959 1,731 1,363 1,538 1,059 1,105 1,071 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 11 WINGSTOP INVESTOR OVERVIEW
Slide 13: Confidence in Our Long-Term Potential
TRANSLATING INTO CONFIDENCE IN OUR -TERM LONG POTENTIAL 10,000+ GLOBAL RESTAURANT POTENTIAL DOMESTIC MARKET INTERNATIONAL MARKETS 2,204 1 359 1 restaurants restaurants 6,000+ restaurants 4,000+ restaurants 1. As of December 28, 2024 12 WINGSTOP INVESTOR OVERVIEW
Slide 14: Anchored in Our Proven Strategy
THAT’S ANCHORED IN OUR PROVEN STRATEGY TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST -IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Strategic Brand Awareness Mitigation Partners Data-Driven Execute Development Menu Innovation Marketing Playbook Digital Leverage Our O
Slide 15: Sustaining Same-Store Sales Growth
SUSTAINING SAME -STORE SALES GROWTH WINGSTOP INVESTOR OVERVIEW
Slide 16: Path to Scale AUVs to $3M
OUR STRATEGIES HAVE US ON A PATH TO SCALE AUVS TO $3M $3M DIGITAL TRANSFORMATION DATA-DRIVEN MARKETING $2.1M DELIVERY MENU INNOVATION BRAND AWARENESS 2025 POWERED BY WINGSTOP SMART KITCHEN FUTURE 15 WINGSTOP INVESTOR OVERVIEW
Slide 17: Consecutive Years of Domestic Same-Store Sales Growth
AND OUR STRATEGIES HAVE STAYING POWER… DELIVER CONSECUTIVE YEARS OF DOMESTIC -STORE SAMESALES GROWT DEMONSTRATED GROWTH THROUGH ECONOMIC CYCLES AND CHANGING CONSUMER 16 WINGSTOP INVESTOR OVERVIEW
Slide 18: We Know Who Our Guest Is and What They Expect
WE KNOW WHO OUR GUEST IS AND WHAT THEY EXPEC GROUP HIGH QUALITY, YOUNGER, NOT LIMITED TO OCCASION, OFF-PREMISE MORE DIVERSE A DAY OR TIME 2+ ADULTS OCCASION 17 WINGSTOP INVESTOR OVERVIEW
Slide 19: We Sized Up the Opportunity for Us
WE SIZED UP THE OPPORTUNITY FOR US… IT’S SIGNIFICA Increasing our awareness, consideration, and restaurant footprint will position us to win more of our fair share 20% 20% 1% CURRENT SHARE OF “FAIR SHARE” DEMAND SPACE BENCHMARK 18 WINGSTOP INVESTOR OVERVIEW
Slide 20: Opportunity to Close Brand Awareness Gap
IT STARTS WITH A MEANINGFUL OPPORTUNITY TO CLOS AWARENESS GAP TO MORE ESTABLISHED, LARGER BRAN BRAND AWARENESS QSR QSR 2019 2024 YouGov Brand Index; Total Population; QSR brands include Jack in the Box, McDonalds, Taco Bell, Sonic,s,Popeyes, Raising Cane’ Wendy’s, KFC, Subway, Whataburger,-FilChick
Slide 21: Systemwide Sales Growth Fueling National Advertising
5-YEARSYSTEMWIDE SALESCAGROF 25% FUELING IS SIGNIFICANT GROWTH IN OUR NATIONAL ADVERTISING NATIONAL AD FUND PREMIUM CONTENT, LIVE SPORTS 4X 2019 2024 20 WINGSTOP INVESTOR OVERVIEW
Slide 22: A Place in Culture, Leaning into Moments
WE HAVE EARNED A PLACE IN CULTURE AND ARE LEANI MOMENTS THAT ELEVATE THE BRAND NBA SUPER STAR KYLIE JENNER EATS KEITH LEE KICKS OFF GIANNIS ANTETOKOUNMPO WINGSTOP IN HOT HONEY RUB IS BACK HOT HONEY MUKBANG VIDEO +20MFollowers +400MFollowers +18MFollowers 21 WINGSTOP INVESTOR OVERVIEW
Slide 23: Menu Innovation Is Attracting New Guests
MENU INNOVATION IS ATTRACTING NEW GUESTS INTO BRAND AND CAN INCREASE THE CONSIDERATION SET CHICKEN TENDERS CHICKEN SANDWICH 1.6B annual servings in the U.S. 2.8B annual servings in the U.S. Hand sauced and Represents meaningful Creates entry point into tossed in one of opportunity in our the brand w
Slide 24: Digital Flywheel for AUV Growth
PROACTIVE TECHNOLOGY INVESTMENTS HAVE CREATED DIGITAL FLYWHEEL FOR AUV GROWTH INSIGHTS DIGITAL & ANALYTICS DATABASE • Record pace of new guest O P acquisition >300 datapoints T 50M+ guests WI S MYWING • Not only have we invested in that NGID DIGITAL data, but we’ve also enriched it • This informs ou
Slide 25: Aspiration of Digitizing Every Transaction
GIVING US CONFIDENCE TO ACHIEVE OUR ASPIRATIONA OF DIGITIZING EVERY TRANSACTION DIGITAL SALES 100% 70%+ DIGITAL CHECK +30% HIGHER THAN 34% NON-DIGITAL 2019 TODAY POTENTIAL 24 WINGSTOP INVESTOR OVERVIEW
Slide 26: Growth in Our Guest Database
BRAND AWARENESS AND MENU INNOVATION IS DRIVIN GROWTH IN OUR GUEST DATABASE TOTAL DIGITAL CUSTOMERS WHO IS OUR NEW GUEST? IN DATABASE • Higher household income than our core 50M+ • Tends to be Gen Z / Millennial DEMOGRAPHICS • Less likely to have kids at home, but typically anchors to a group occasio
Slide 27: Moving Guests Up the Frequency Curve
AND WE ARE MOVING GUESTS UP THE FREQUENCY CUR DIGITAL USERS LIGHT NEW MEDIUM HEAVY Start of Pandemic → 2019 2020 2021 2022 2023 2024 26 WINGSTOP INVESTOR OVERVIEW
Slide 28: Delivery Is an Additional Unlock
DELIVERY IS AN ADDITIONAL UNLOCK TO OUR ASIPRATI GOAL OF DIGITIZING EVERY TRANSACTION DELIVERY SALES MIX 50% UberEats • Menu and operations Added National Delivery Launch, 31% built for off -premise Exclusive with DoorDash Benchmark • Opportunity to build 28% brand awareness 13% • Highly incremental
Slide 29: New Kitchen Operating Platform
STRATEGIES TO ACHIEVE OUR AUV $3M TARGET ARE BOLSTERED BY OUR NEW KITCHEN OPERATING PLATFORM DEMAND FORECAST KITCHEN DISPLAY SYSTEM ORDER READY SCREEN 28 WINGSTOP INVESTOR OVERVIEW
Slide 30: Wingstop Smart Kitchen Is a Game Changer
WINGSTOP SMART KITCHEN IS A GAME CHANGER FOR O GUESTS AND RESTAURANT OPERATIONS SPEED OF SERVICE SIMPLIFYING AND DELIVERING ON OPERATIONS… GUEST FEEDBACK IMPROVE THEBASELINESPEEDOFORDERS PRIOR TO WINGSTOP SMART KITCHEN …DELIVERING A CONSISTENT EXPERIENCE POST WINGSTOP SMART KITCHEN …WHILE ENHANCING
Slide 31: Best-in-Class Unit Economics
BEST-IN-CLASS UNIT ECONOMIC WINGSTOP INVESTOR OVERVIEW
Slide 32: Simple and Proven Operating Model
WE HAVE A SIMPLE AND PROVEN OPERATING MODEL EFFICIENT STRONG UNIT LOW FIXED COST LABORMODEL ECONOMICS Simple menu and high digital Distinctive and high -quality productwith strategic menu price Focused on “B” real estate sites adoptiondrives an efficient positioning yields great value translating to
Slide 33: Model and Investments Maintain Best-in-Class Unit Economics
OUR MODEL AND INVESTMENTS MAINTAIN -IN-CLASS BESTUNIT ECONOMICS DIGITAL INNOVATIONS SUPPLY CHAIN STRATEGY WINGSTOP SMART KITCHE 32 WINGSTOP INVESTOR OVERVIEW
Slide 34: Supply Chain Strategy Creates Predictable Food Costs
OUR SUPPLY CHAIN STRATEGY HAS CREATED PREDICTAB OUR FOOD COSTS POULTRY STRATEGIC SUPPLY REDUCED VOLATILITY WITH ADDRESSED PRICE AND BASE SCALED FOR GROWTH LONG -TERM MUTUAL PRODUCT MIX LEVERS AGREEMENTS 33 WINGSTOP INVESTOR OVERVIEW
Slide 35: Eliminating Food Cost Volatility
…ELIMINATING FOOD COST VOLATILITY WE’VE SEEN IN $2.28 $1.43 Urner Barry $0.92 Market Pricing 34% (Classic Wings) 33% System Food 32% & Packaging Costs 2023 TODAY 34 WINGSTOP INVESTOR OVERVIEW
Slide 36: Acceleration in Restaurant AUV
ACCELERATION IN RESTAURANT AUV HAS US ON OUR PA TO $3M TARGET 1 AUVs- COMPARABLE RESTAURANTS $2.1M $1.5M $1.1M $0.9M 2012 2016 2020 2024 1. Based on restaurants having a full 52 weeks of sales. Average Unit Volumes (AUVs) based on fiscal years /31 ending /2016, 12/29/2012, 12/26/2020, 12and 12/28/20
Slide 37: Strengthening Our Best-in-Class Unit Economics
STRENGTHENING OUR-IN-CLASS BEST UNIT ECONOMICS CASH-ON-CASH RETURNS REMAIN STRONG 2015 2019 TODAY DomesticSystemAUV(1) $1.1M $1.2M $2.1M (2) Investment Cost ~$370k ~$400K ~$500K (3) Unlevered COC Return 50% 50% 70%+ Note: 1. AUV based on Domestic System average based on fiscal year ending 12/26/2015
Slide 38: Scaling Wingstop to a Top Global Restaurant Brand
SCALING WINGSTOP TO A TOP GLOBAL RESTAURANT BRAN WINGSTOP INVESTOR OVERVIEW
Slide 39: Strong, Diverse Franchisee Base
WE HAVE A STRONG, DIVERSE FRANCHISEE BASE TO SUP OUR GROWTH INU.S. THE • Average restaurant count per franchisee is 10 verage and antenure a of > 10 years • 80 unique franchisees opened a new restaurant in 2024 • 95%+ of new restaurants opened by existing franchisees WELL-DIVERSIFIED FRANCHISEE BASE
Slide 40: Development Pipeline Positions Us for Growth
DEVELOPMENT PIPELINE POSITIONS US TO CONTINUE T INDUSTRY -LEADING GROWTH GLOBAL DEVELOPMENT GLOBAL NET NEW UNITS AGREEMENTS • Market level playbooks 1,955 that support our development targets • Clearly identify and align with strategic growth 349 partners 898 • Franchisee investments 133 in organiza
Slide 41: Line of Sight to Top 10 Global Restaurant Brand
CLEAR LINE OF SIGHT INTO BECOMING A TOP 10 GLOBA RESTAURANT BRAND 10,000+ GLOBAL RESTAURANT POTENTIAL DOMESTIC MARKET INTERNATIONAL MARKETS 2,204 (1) 359 (1) restaurants restaurants 6,000+ restaurants 4,000+ restaurants 1. As of December 28, 2024 40 WINGSTOP INVESTOR OVERVIEW
Slide 42: Global Expansion Focus Areas
OUR GLOBAL EXPANSION IS FOCUSED ON A SET OF COR PREMIUM QUALITY HALO REAL ESTATE & DEVELOPMENT High-quality positioning supporting Flagships strengthen the brand and tradition a premium price sites expand accessibility FLAVOR EXPERTISE SIMPLE OPERATING MODEL "FlavorExperts" allows us to differentiat
Slide 43: The World Is Craving Our Flavor
THE WORLD IS CRAVING OUR FLAVOR 42 WINGSTOP INVESTOR OVERVIEW
Slide 44: Legacy Markets Demonstrate Proven Returns
LEGACY MARKETS DEMONSTRATE PROVEN RETURNS INDONESIA SINGAPORE LEGACY Store Count 263 2-Year System- Wide Sales 87% MEXICO UAE Growth Sales to Investment 4:1 TAM Potential 550 PROVEN PORTABILITY REALIZING OF THE BRAND STRONG RESULTS ACCELERATING GROWTH Store count as of December 28, 2024 43 WINGSTOP
Slide 45: Early Successes in Emerging Markets
EARLY SUCCESSES IN EMERGING MARKETS HIGHLIGHT G OPPORTUNITY EMERGING & NEW NEWMARKETS CANADA UK PUERTO RICO Store count 96 2-Year System- Wide Sales 250% Growth MIDDLE EAST SPAIN FRANCE Sales to Investment 4:1 TAM Potential 1,450 TARGETED REGIONS Europe Central America Asia Pacific Middle East Store
Slide 46: Large Untapped Markets on the Horizon
WITH LARGE UNTAPPED MARKETS ON THE HORIZON INDIA TAM: 1,000+ CHINA TAM: 1,000+ 45 WINGSTOP INVESTOR OVERVIEW
Slide 47: Established Development Playbook
FACILITATED BY OUR ESTABLISHED DEVELOPMENT PLAY MARKET PRESENCE: Establishes prominent flagship location to assert Wingstop’s position in the market CREATING A “HALO’’ EFFECT: Positive experiences that infuse the whole system and offer premium service FOOT TRAFFIC GENERATOR: Eye-catching signage and
Slide 48: We Have a Proven Track Record of Results
WE HAVE A PROVEN TRAC RECORD OF RESULTS WINGSTOP INVESTOR OVERVIEW
Slide 49: Sustaining a Predictable Financial Model
SUSTAINING A PREDICTABLE FINANCIAL MODEL INTO TH MULTIPLE YEAR STRATEGY DISCIPLINED INVESTMENTS AND TO GROW TOPLINE SALES USE OF CASH System sales increased by 144% Strategic investments to support-term long 1 since 2020 growth MAINTAINING BEST -IN- ASSET-LITE, STRONG & CLASS UNIT ECONOMICS PREDICTA
Slide 50: Key Financial Considerations
KEY FINANCIAL CONSIDERATIONS CONSISTENT TRACK • 21 consecutive years of same -store sales growth RECORD OF POSITIVE • Since 2019, Wingstop achieved stacked -store samesales of 82.1% SAME-STORE SALES • More than doubled annual system sales since 2021 • Wingstop has a long track record of healthy unit
Slide 51: Consistent Track Record of Industry-Leading Financial Performance
CONSISTENT TRACK RECORD OF INDUSTRY -LEADING FINANCIAL PERFORMANCE REVENUE TOTAL UNITS $MM SYSTEM -WIDE SALES ADJUSTED EBITDA $MM $MM $212 $146 $93 $108 $57 $75 2019 2020 2021 2022 2023 2024 50 WINGSTOP INVESTOR OVERVIEW
Slide 52: Asset Lite Model Drives Significant Cash Flow
ASSET LITE MODEL DRIVES SIGNIFICANT CASH FLOW GE CASH FLOW DYNAMICS (1) FREE CASH FLOW • 98% franchised model ‒ Highly cash -flow generative business with $180MM+ LTM free ($MM) $180M Strong Free cash flow Cash Flow (1) • $650MM+ cumulative free cash flow generated from FY19 FY24 to • Stable, recurr
Slide 53: Well-Positioned for Our Next Phase of Growth
WINGSTOP IS WELL -POSITIONED FOR OUR NEXT PHASE OF G $3M AUV TARGET 70%+ CASH-ON-CASH RETURNS 10,000+ GLOBAL RESTAURANTS 3-TO-5 YEAR TARGETS LONG -TERM TARGETS MID-SINGLE DIGIT 10%+ UNIT LOW-SINGLE DIGIT 10%+ UNIT SAME-STORE SALES GROWTH SAME-STORE SALES GROWTH GROWTH GROWTH 52 WINGSTOP INVESTOR OVE
Slide 54: Appendix
APPENDIX WINGSTOP INVESTOR OVERVIEW
Slide 55: GAAP – Non-GAAP Reconciliation
GAAP– NON-GAAP RECONCILIATION ($ in thousands) December 28, December 26, December 25, December 31, December 30, December 28, Fiscal Year Ended 2019 2020 2021 2022 2023 2024 Net income $ 20,476 $ 23,306 $ 42,658 $ 52,947 $ 70,175 108,717 (+) Interest expense, net 17,136 16,782 14,984 21,230 18,227 21
Slide 56: Wingstop Investor Overview
WINGSTOP INVESTOR OVERVIEW